3. 84 months ago you put $7,000 into a term deposit. If you earned $2,775.80 in interest on the term deposit, what nominal rate of interest, compounded quarterly, did you earn? [3 marks] P/Y CHY N VY PV PMT FV ANSWER: 4. You just invested $16,000 in a term deposit that pays 4% compounded semi-annually. How many YEARS would it take to eam $2,746.55 in interest? [3 marks] P/Y C/Y N I/Y PV PMT FV FV FV = PV(1 + i)" PV = or PV = FV(1 + i)- (1+i)n II IE FV = PV + Interest 71 N N = Number of years x P/Y (=m) Number of years = P/Y = m